BUENOS AIRES, Aug 22 (Reuters) - Argentina’s state energy company YPF and a subsidiary of China’s Sinopec Group agreed on Friday to extend their joint oil exploration and development projects in the western Argentine province of Mendoza until 2027, YPF said.
“New projects will include 3D seismic surveying, drilling exploratory wells and reconditioning treatment and injection plants for more than $300 million,” YPF said in a statement.
The Ventana area in Mendoza, a region which borders the Andes mountain range in western Argentina, is owned by YPF and produces 6,000 barrels of oil per day across 480km square.
Argentina needs to increase production in order to counter a chronic energy deficit, meaning imports exceed exports, putting pressure on dwindling foreign reserves. (Reporting by Sarah Marsh; Editing by Diane Craft)